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Published:  23 July, 2008

Diageo unveiled mediocre full-year results last week, with profits hit by the weakness of the US dollar. Profits reached only 1,902 million (up - just - from 1,911 last year), despite organic volumes up 4% and organic net sales (after deducting export charges) up 6% . Volumes were driven by a good performance by Diageo's global priority brands (including Johnny Walker, Smirnoff and Baileys), which rose 5% worldwide. The company's local priority brands (such as Bell's Scotch and Gordon's gin) posted flat sales. In the UK, good sales (up 5%) were impacted by margin pressures, which meant net sales fell 10 million to 780 million. Blossom Hill was the big winner for Diageo in the UK, posting a 37% increase in volume. Diageo's share of the branded wine market now stands at 13.7%, compared to 11.7% last year. Diageo's share of the spirits market also rose to 24.8% compared to 23.6% last year.